Background

The client were initially looking to go to RFP in order to satisfy themselves that they have competitive commercial arrangements with their provider (and would look to change provider if necessary as a result of their findings).  

Our approach

We suggested a different and much less disruptive approach for the client – to undertake an independent review of their fees with their current provider. By using our extensive database of fee schedules we created bespoke comparison groups of similar size / type clients which their fee schedule was measured against. This resulted in areas being highlighted that are out of line with market pricing and areas which offer potential cost savings. MJ Hudson Bridge provide ManCo services for this client and the fee benchmarking review (in this instance) was provided as a service enhancement via the client’s relationship with Bridge 

Results

With any client that has not undertaken a fee review with their provider in the last three years, we are always confident that there will be savings of note to be made. This certainly proved to be the case here. Several areas were identified (much to the clients surprise) where they were paying significantly above mid-point average pricing. Even just moving to mid-point pricing for the couple of largest (‘big ticket’) items will result in annual savings in excess of $1.5 million!